Connect with us

Spread & Containment

A diversified metals explorer aligned with the evolving macro landscape

With the commodity cycle gaining positive momentum after over a decade of…
The post A diversified metals explorer aligned with the evolving macro landscape…



With the commodity cycle gaining positive momentum after over a decade of stagnant returns, investors are keen on allocating into bright spots in the space.

The sources of this momentum include:

The Russia-Ukraine war, which has tightened oil, grain and metals supply chains, and exacerbated negative market sentiment amid fears of a global recession, nudging investors toward commodities for capital preservationThe post-pandemic surge in demand, which is placing a premium on a wide variety of industrial inputs, precious and base metals chief among themThe acceleration of the transition from fossil fuels to electric power, which requires exponential growth in energy metal production including silver, copper and zincThe highest inflation rates in decades, which have set the stage for explorers and producers to increase cash flows and expedite the securing of domestic supplies

Among mineral explorers positioned to capitalize on commodities’ return to the spotlight, one company worth a deeper look is Alianza Minerals (TSXV:ANZ, OTCQB:TARSF), a discovery-focused microcap issuer that balances self-funding with joint development agreements to maximize discovery opportunities, mitigate risk, keep costs low, and create flexibility to make acquisitions regardless of market conditions.

The company’s silver, gold and base metal properties span a diversity of locations in Yukon, Nevada and Colorado, as well as four royalties in Mexico and Peru, all of which were selected based on political stability, underexplored land packages and tier-1 mineral endowments.

Led by President and CEO, Jason Weber, Alianza’s exploration strategy is backed by a team of experts in early-stage projects and boots-on-the-ground fieldwork to accurately capture geologic characteristics.

“As a team, we recognize the weights of our evidence,” commented Weber. “We take our observations and results and let them guide us, instead of just looking for evidence to support our exploration thesis. When we explore, we’re trying to disprove our ideas. If the ideas remain sound after each campaign, we keep going. That’s a bit different from other approaches.”

With that, we’ll now examine recent developments at Alianza’s properties to offer a more focused sense of the investment opportunity at hand.

Haldane Silver Project

Alianza’s flagship 8,579-ha Haldane Silver Project is located in Yukon’s Keno Hill Mining District, which is one of the world’s highest-grade silver camps. Production at Keno Hill exceeded 217 Moz of silver from 1913-1989 at an average of 1,149 g/t Ag (37 oz/t), 5.62 % Pb and 3.14 % Zn.

Haldane is underexplored and road-accessible with discovery potential at depth, on strike and in new high-grade silver vein systems, including room to double the known strike length of 12 km.

West Fault Target

Drilling in 2020 at Haldane’s West Fault Target yielded 1.78 m averaging 818 g/t Ag, 3.47 % Pb and 1.03 % Zn, with 2021 follow-up drilling reaching as high as 1.26 m averaging 3,267 g/t Ag, 5.80 % Pb and 7.02 % Zn.

Siderite-galena-sphalerite breccia at 297 m from HLD21-25, West Fault Target, yielding 6.83 m of 363 g/t Ag, 1.73 % Pb and 2.8 % Zn. Source: Alianza Minerals.

West Fault is characterized by wide, high-grade silver veins and mineralization open to depth and on strike, with veins occurring in two structural levels. To date, Alianza has identified silver vein mineralization at West Fault over an area of 100 m x 90 m.

Middlecoff Zone

Haldane’s Middlecoff Zone offers 235 m of strike on a mineralized structure and historic production of 24.7 t of 3,102 g/t Ag and 59 % Pb (1918-19). The company plans to drill test the zone at depth and for a southern extension.


Another prospective area at Haldane, the Bighorn Zone, yielded multiple vein structures and Keno-style mineralization in the company’s first drill hole (2019), testing a soil geochemical anomaly, including 2.35 m of 125 g/t Ag, 4.39 % Pb and 0.09 % Zn.

Ongoing exploration work at Haldane

Motivated by these encouraging results, Alianza initiated a mapping, prospecting and trenching program at Haldane in September to bring immature targets to the drill-ready stage. The company is investigating recently defined targets and extensions of historical high-grade silver production.

Targets include four areas with potential Keno-style carbonate-silver sulphide vein mineralization similar to Middlecoff, West Fault, the nearby Keno Hill Mine, and other strategic Keno Hill deposits recently purchased by Hecla Mining, the largest silver producer in the U.S.

Target areas

Sundown, a large gold-arsenic soil geochemical anomaly with some silver and antimonyThe 900-m-long Bighorn silver-lead anomaly, with exploration to optimize for a follow-up to the initial 2019 drill holeBighorn East, where crews will investigate anomalous soil results between Middlecoff and Bighorn EastThe 400 m x 300 m Sb-Au-As-Bi Ross West anomaly, which is 1,800 m west of the original Ross soil geochemical anomaly initially tested in 2019

Targets may also be prospective for gold mineralization, with other Keno District players, such as Banyan Gold, having recently identified gold deposits in the area.

Stateline Property

Alianza’s news flow has also been active with its joint venture initiatives as part of the SW U.S. Copper Alliance alongside Cloudbreak Discovery (LSE:CDL), a diversified natural resource project generator in Canada and the U.S.

Source: Alianza Minerals.

Under the Alliance, which began in June 2021, either Alianza or Cloudbreak can introduce projects located in the southwestern U.S. Upon acceptance, ownership is split 50/50, with 40 % of funding provided by the introducing partner. This arrangement will run for an initial two-year term, which can be extended for an additional two years.

Last month, the Alliance received TSXV approval to option the Stateline Property – located on the Utah/Colorado state line – to Allied Copper (TSXV:CPR), a Vancouver-based mineral exploration company focused on acquiring and developing copper and gold assets in the Western U.S.

Stateline is prospective for sediment-hosted copper mineralization and has yielded historical results of 1.6 % Cu and 1.7 g/t Ag, as well as 0.45 % Cu and 2.1 g/t Ag. It is also proximal and on trend with the operating copper-rich Lisbon Valley Mine.

Allied may earn 100 % ownership of Stateline, subject to a 2 % net smelter royalty (NSR), by making the following payments over a four-year term:

Aggregate cash payments of $315,000Issuance of 4,250,000 common sharesExploration expenditures of $3,750,000Issuance, subject to certain milestones, of an additional 1,500,000 shares and 1,500,000 warrants

Klondike Copper Property

Colorado’s Klondike Property, another Alliance project, has also been optioned to Allied with a planned 1,000 m drilling program recently completed in September of 2022.

Klondike is road-accessible year-round and offers favourable stratigraphy known to host sediment-hosted copper deposits in the Paradox Copper Belt, similar to the Lisbon Valley Mining Complex 50 km to the northwest.

Copper-oxide mineralization from Klondike. Source: Alianza Minerals.

The program, fully funded by Allied, was an initial test of three multi-km copper targets at the West Graben (6.23 % Cu, 127 g/t Ag), East Graben (2.8 % Cu, 37.8 g/t Ag) and Northeast faults, with results tentatively slated for Q4 2022. Phase one included 5 of the 12 highest-priority drill holes to a maximum depth of 250 m.

Access construction between pads at Northeast Fault revealed numerous new occurrences of copper-oxide mineralization in sandstone. Alianza identified this target during a 2021 reconnaissance program, with sampling returning 1.56 % Cu and 1.4 g/t Ag over 4.6 m.

In addition to Klondike’s high-grade potential, its disseminated copper-silver mineralization may be amenable to modern open-pit mining (solvent extraction electrowinning), again similar to Lisbon Valley.

Allied’s option on Klondike will see it earn full ownership over a four-year period by:

Funding $4,750,000 in explorationIssuing 7,000,000 sharesPaying $400,000 to the AllianceAn additional 6,000,000 Allied warrants are payable upon reaching certain milestones

The Alliance will hold a 2 % NSR, half of which Allied may purchase for $1,500,000.

Future catalysts

Toward the end of this year and into the first half of 2023, investors should keep a close eye on results from Haldane and Klondike and initial field work and drilling from Stateline as Alianza works to define the size and tenor of mineralization.

The company’s Tim Project in Yukon (320 g/t Ag and 9.12 % Pb over 4 m (1988)) is also in the final stages of permitting, which will allow partner Coeur Mining to begin work in early 2023 on the silver, lead and zinc property.

And when it comes to funding ongoing exploration, Weber is confident in the support of new and existing partners, and long-term shareholders as significant results are announced, metals markets take notice, and news from its new neighbour, Hecla, unlocks value in the Keno Hill District.

Investment case

Alianza’s stock, currently at an all-time low, is far from worrying for Weber, who believes the company is undervalued and primed to surge upon the unveiling of an economic discovery.

“I’m actually really excited about how things look,” he stated. “We’ll have drilling news flow that will support us as things come together, both in the short term and through 2023.”

While metals companies have not been immune to rising interest rates and growing recessionary fears, Weber forecasts that prices will rise again in 2023, after year-end tax selling, as investors realize that bearish views were already priced into the market.

If his thesis comes to pass, it will likely coincide with results from Alianza’s active projects, positioning the company to generate shareholder value and establish tangible market recognition moving forward.

From a long-term perspective, the CEO identifies a potential new silver discovery at Haldane as one of Alianza’s strongest advantages among competitors.

“If the market turns around like we think it will,” he said, “we’re in the early stages of a silver discovery in a known silver district that is now going to be even more highly recognized. I think that’s primo exposure for a silver investor.”

He also recognizes an enticing opportunity in the company’s copper and zinc exposure, which, along with silver, stands to benefit from the ongoing supply crunch in energy metals underlying the electrification revolution.

“There are going to be refiners beating down producers’ doors to refine the metals,” Weber said, “and they’re in turn going to be beating down the doors of companies like us who are going to make those early-stage discoveries.”

Equipped with standout properties in line with macro demand, a reasoned, data-centric exploration strategy, and a team unafraid to get their hands dirty to see it through, Alianza boasts a crystal-clear investment thesis to ride through current market pessimism into the next stage of the clean energy transition.

To learn more about Alianza Minerals, visit

FULL DISCLOSURE: This is a paid article by The Market Herald.

The post A diversified metals explorer aligned with the evolving macro landscape appeared first on The Market Herald.

Read More

Continue Reading


How Fauci’s Wife Used NIH Position To Backstop Her Husband’s Pandemic Health Directives

How Fauci’s Wife Used NIH Position To Backstop Her Husband’s Pandemic Health Directives

Authored by Adam Andrzejewski via OpenTheBooks,




How Fauci's Wife Used NIH Position To Backstop Her Husband’s Pandemic Health Directives

Authored by Adam Andrzejewski via OpenTheBooks,

It's the Washington, D.C. power couple that cost taxpayers nearly $1 million per year.

While Dr. Anthony Fauci gave the nation its pandemic public policy prescriptions, his wife, Dr. Christine Grady, the Chief Bioethicist at Fauci’s employer, the National Institutes of Health (NIH) provided the moral framework.

The Faucis are important to the center-left, because they represent the pinnacle moment of the administrative state – top-down public policy run by an elite group of government scientists.

Conversely, to the center-right, the Faucis represent “the fatal conceit of the elites.” As Noble Laureate economist Friedrich Hayek theorized, the elites are no match for billions of free people acting in their own best interests.


While Tony Fauci was the top paid federal bureaucrat and out-earned the U.S. President at $480,654 per year, Christine Grady, as the chief bioethicist at NIH out-earned the U.S. Vice President ($243,749). When adding 35-percent in benefits, the couple cost taxpayers an estimated nearly $1 million per year.

CHART: Tracking the Fauci household net worth which increased from $7.6 million to $12.6 million between the start of 2020 and the end of 2021. Source: lawsuit production from NIH on Fauci’s financial disclosures.

It’s difficult to know where Anthony Fauci ends and Christine Grady begins. Here’s how Tony Fauci described Grady’s influence on his public policy decisions:

I've benefited greatly from this partnership of overlapping interest and common interest. So, a lot of the things that I do with regard to the development of vaccines, the development of therapies, being involved with outbreaks and pandemics, have ethical overtones to them. I can say that I am very blessed to be living with someone who is very likely, most people think, one of the most outstanding ethicists in the world. To have her in the house -- you know, as a consultant on ethical issues—is pretty advantageous.

So, the Faucis lived a conflict of interest at the breakfast table, the office, and back home around the dinner table. However, NIH has never acknowledged this.

In fact, NIH forced our organization to file two federal lawsuits with the public-interest law firm Judicial Watch as our lawyers to finally bring transparency to the Fauci/Grady job descriptions, conflict of interest documents, financial and ethics disclosures, contracts, and other documents.

Then, NIH slow-walked thousands of pages of production. Yet, no nepotism waivers were produced, no acknowledgement of conflicting interests, and no records documenting violations of federal ethics policy.

Slide developed by Dr. Anthony S. Fauci and presented by Dr. Christine Grady during her NIH presentation COVID Vaccines: Approaches to Vaccine Trial Design November 4 2020. Many of the prescriptions on this slide showed little efficacy in after-action studies. Source: FOIA

While Grady’s work during the pandemic was described as “invaluable” by then-NIH director Francis Collins, the general public knows little about her day-to-day responsibilities. 

An open records request for Grady’s job description reveals she, too, is meant to use her position to influence policy.

Screenshot from Christine Grady’s job description, received. Source: FOIA

Advocating Lockdowns

Dr. Fauci knew that his “draconian policies” on social isolation and economic lockdowns would have “collateral negative consequences,” and admitted Christine Grady was a driving force behind his hardline approach.

In a November 2021 interview with the couple, Fauci said that he gained strength from his wife’s support saying, “background and her experience in really core ethical principles [helped] me to really feel much more comfortable in what I was saying.”

In the interview, Christine Grady described how she mind-mapped national policy with her husband:

"But we've had conversations about the sort of consequences of telling people to stay home and what it would do for the economy. And there were a lot of people in those days that, and still who said, it's ruining the economy. It's much more important to just keep things going and not worry about transmitting virus…I said, that one of the messages should be, how many lives are you willing to sacrifice? And that message would be pretty stark and pretty brutal, but that's really what the trade-off was…And so we've had that kind of conversation over dinner more than once, actually.”

Fauci replied that these conversations “sharpened [his] resolve” to move forward with lockdown policies.

Social isolation was one of the individual sacrifices Grady and Fauci thought were necessary to make on behalf of “public health.”

Vaccine Development & Public Safety

Like her husband, Grady exclusively focused her attention and remarks on vaccine development rather than other potential ways to treat and combat the spread of COVID-19.

One major paper she co-authored in 2020 advocated for vaccines to be distributed under emergency use authorization (EUA), which is how the federal government ultimately proceeded.

In this paper, Grady’s advocacy for vaccines came with a troubling acknowledgement:

 “even with mandated safety monitoring after EUA distribution, it would be difficult or impossible to ascertain vaccine-induced adverse events.”

However, during most of her public presentations, she asserted that vaccines were developed in a fast, but “safe and rigorous” manner. Just one of many examples can be found here.

By November 2021, she said the risk of unknown long-term effects were “not zero” but that “there is a balance between benefiting the public health now versus waiting for all the information we might get.”

Despite these admissions, Grady often said she was “disturbed” by vaccine hesitancy, implying that safety concerns were somehow unreasonable.

Vaccine Mandates

Grady’s stance on vaccine mandates changed radically throughout the pandemic.

In June 2020, a presentation she gave suggested “immunity passports” could cause “discrimination without much overall gain.” A passport system would allow businesses to limit or deny access to those who remained unvaccinated.

Six months later, in January 2021, Grady said, “I do believe that healthcare providers, like everyone else, should have the choice” whether to take the vaccine or not.

But by early October 2021, Grady had decided the choice facing health care workers was a drastically different one: whether to get the vaccine or lose their jobs.

Later that month, she also flipped her position on vaccine passports. What once was a potential source of discrimination was recast as a way to access “social benefits” like restaurants and movie theaters.

It’s a disturbing way to describe Americans free association of movement.   

Grady went on to co-author a March 2022 report approving of social ostracization for the vaccine-hesitant and encouraging employers to pressure their workers:

“While some employers might understandably feel hesitant to pressure employees to get vaccinated, our analysis suggests that it is often ethically acceptable to inform, encourage, strongly encourage, incentivize, and subtly pressure unvaccinated people to benefit them, the organization, and other employees.”

In fewer than two years, Grady had completely altered her assessment of vaccine mandates and widespread restrictions on the behavior of unvaccinated Americans. Gone were concerns about discrimination and freedom of choice.

As Dr. Fauci pushed and pressured the public to get vaccinated for the sake of their neighbors and family members, Grady began considering it ethical to fire workers who did not comply.

Likewise, it became a “social benefit” to get a vaccine passport that would allow people to avoid government restrictions on their free movements.

Screenshot of Tweet – Dr. Fauci and Dr. Grady maskless at the Washington National baseball game in summer 2020 after Fauci threw out the first pitch.

Mask Mandates

While her husband advocated masking and double masking—even when “fully vaccinated”—Dr. Grady consistently backed his position.

In July 2020, during an InStyle interview, Grady answered questions about masking:

Interviewer: Let me ask you, Chris, as a bioethicist, what do you make of this moment we're in, when even a mask has become more of a divisive issue?

Grady: Well, I would say that masks shouldn't be divisive. It's a relatively easy way to protect one's self and others. And so for public health reasons, I think everybody should do it. From an ethical perspective there is always this tension between what you ask people to do that feels like a restriction of their liberty and what is required for public health. And in this case, it seems like a slam dunk. It's not restricting liberty much, and it's very helpful for public health.

Grady was consistent and in November 2021 spoke to the ethical balancing test of public safety versus individual freedom and never viewed mask wearing to be much of an infringement on individual rights:

“There's a classic tension between public health, and individual interests and freedoms. Where there seems to be this conflict to the things that we do to protect the public health, and to protect the population for the common good. Sometimes they are perceived to be, and sometimes they do in small ways, infringe on people's freedoms. There are principles of public health ethics that help you sort out the kinds of interventions that we should use: Things that are effective, that are proportional, where the benefits outweigh the risks that are necessary, that are least infringement possible, that are transparent, that we can publicly justify.

…What's striking to me is that, the kinds of burdens that we've asked people to undertake, like putting on a mask, don't really infringe on one's freedoms very much. They're low burden and they have an effect. They do protect the person who's wearing the mask, as well as the people that are around them.”

A recent credible study on mask wearing during the pandemic argued there is no clear impact of masking on Covid-19 infection rates.

Patients Dying in Isolation

During the pandemic, Grady revealed a default preference for government control over individual rights and responsibilities. Grady was an early proponent of one of the most heinous pandemic polices: patients dying in isolation.

For example, while uncritically accepting dying in isolation as a fact of the pandemic, Grady’s primary solution was to expand funding for health care workers to have access to therapy and other resources to heal from their “moral distress.”

As early as April 2020 Grady said:  

“Because of visiting policies and fear of contagion sometimes when somebody is really sick their family cannot visit them, they can't see them…the stress and the sadness and the isolation on families is and is going to be great.” 

In a November 2020 NIH presentation she called these “lonely” deaths “understandable:”  

"It’s a lonely kind of death, many institutions, understandably have visitor policies which either restrict the number of visitors to one or zero so sometimes people are dying without having their family nearby and that puts an additional burden on the healthcare staff.” 

In one co-authored paper urging healthcare workers to “temper these potentially dehumanizing scenarios with imaginative solutions that do not sacrifice compassion and equal respect on the altars of safety and efficiency.” 

She interrogates the tension between individual freedom and community safety in a book published April 26, 2022, as a co-author proposing a radical “solidarity model” for ethics in healthcare, stating that rather than emphasizing a respect for individuals to make decisions in their own interest:  

“We should recognize that there are times when solidarity takes precedence over individual liberties, and broadening our concept of “respect for persons” means uniting as a profession to protect all those who expect to receive care from nurses in whatever healthcare setting they find themselves.” 

She co-edited a section in the same book arguing this extends to dying in insolation: 

“The solidarity model may apply to restricted family visitation, which generated moral distress for nurses, particularly when patients died without loved ones present…”


As demonstrated by her own words, Grady’s record evinces an understanding of ethics that begs fundamental moral questions, regularly subordinates individuals beneath an amorphous “public health,” and relies on subtle but unacknowledged shifts to retain an alleged moral high ground.

While some of her observations early in the pandemic did show an interest in providing nuance to policymaking—questioning the usefulness of immunity passports and highlighting issues with long-term vaccine effects under a EUA rollout—this quickly gave way to conformity to broader political zeitgeist, painting pushback as ignorant, uncaring, and simply wrong.

By 2021 her public statements never suggested a limit to sacrifices the individual should ethically make on behalf of “public health,” from masking, to taking vaccines, to foregoing family gatherings even at the point of one’s own death.

Both Fauci and Grady made clear that they wish for ethicists like Grady to have more power and more influence over political decision-making.

As Grady remains the chief NIH bioethicist, Americans should ponder: does Grady’s philosophy advance what is “fair” and “just” in public health policy? What does her continued leadership mean for the future of American policy.

Taxpayers compensate Grady generously, and they’re owed full transparency about her role, responsibilities and influence – during the pandemic and into the future.

Note: We reached out to Dr. Christine Grady and NIH for comment. While acknowledging our requests, no statement or comment was received before publication.


Dr. Anthony Fauci: The Highest Paid Employee In The Entire U.S. Federal Government Published January 21, 2021 | Forbes

Dr. Anthony Fauci’s Little Known Biodefense Work. It’s How He Became The Highest Paid Federal Employee. Published October 20, 2021 | Forbes

No, Fauci’s Records Aren’t Available. Why Won’t NIH Immediately Release Them? Published January 12, 2022 | Forbes

Breaking: Fauci’s Net Worth Soared To $12.6 Million During The Pandemic – Up $5 Million (2019-2021). Published September 28, 2022 |

HISTORIC RELEASE: Dr. Anthony Fauci’s Official Work Calendar (November 2019 – March 2020) | Published October 20, 2022 |

ABOUT US – We believe transparency is transformational. Using forensic auditing and open records, we hold government accountable.

In the years 2021 and 2022, we filed 100,000+ FOIA requests and successfully captured $19 trillion government expenditures: nearly all federal spending; 50 state checkbooks; and 25 million public employee salary and pension records from 50,000 public bodies across America.

Our works have been featured at the BBC, Good Morning America, ABC World News Tonight, The Wall Street Journal, USA Today, C-SPAN, Chicago Tribune, The New York Times, NBC News, FOX News, Forbes, National Public Radio (NPR), Sinclair Broadcast Group, & many others.

Our organization accepts no government funding and was founded by CEO Adam Andrzejewski. Our federal oversight work was cited twice in the President's Budget To Congress FY2021. Andrzejewski's presentation, The Depth of the Swamp, at the Hillsdale College National Leadership Seminar 2020 in Naples, Florida posted on YouTube received 3.8+ million views.

Tyler Durden Wed, 03/22/2023 - 21:00

Read More

Continue Reading


“We Are Headed For Another Train Wreck”: Bill Ackman Blames Janet Yellen For Restarting The Bank Run

"We Are Headed For Another Train Wreck": Bill Ackman Blames Janet Yellen For Restarting The Bank Run

Yesterday morning we joked that every…



"We Are Headed For Another Train Wreck": Bill Ackman Blames Janet Yellen For Restarting The Bank Run

Yesterday morning we joked that every time Janet Yellen opens her mouth, stocks dump.

Well, it wasn't a joke, and as we repeatedly noted today, while Jerome Powell was busting his ass to prevent a violent market reaction - in either direction - to his "most important Fed decision and presser of 2023", the Treasury Secretary, with all the grace of a senile 76-year-old elephant in a China market, uttered the phrase...


... and the rest was silence... or rather selling.

Commenting on our chart, Bloomberg's Mark Cudmore noted it was Yellen who was "to blame for the stock slump", pointing out that "the pessimistic turn in US stocks began within a minute of Janet Yellen starting to speak."

The S&P 500 rose almost 1% in the first 47 minutes after the Fed decision. Powell wasn’t the problem either: the index was 0.6% higher in the first 17 minutes after his press conference started.

Why am I picking that exact timing of 2:47pm NY time? Because that is the minute Yellen started speaking at the Senate panel hearing. The high for the S&P 500 was 2:48pm NY time and it fell more than 2.5% over the subsequent 72 minutes. Good effort.

Picking up on this, Bloomberg's Mark Cranfield writes that banking stocks globally are set to underperform for longer after Janet Yellen pushed back against giving deposit insurance without working with lawmakers. He adds that "to an aggressive trader this sounds like an invitation to keep shorting bank stocks -- at least until the tone changes into broader support and is less focused on specific bank situations." Earlier, we addressed that too:

Looking ahead, Cranfield warns that US financials are likely to be the most vulnerable as they are the epicenter of the debate. Although European or Asian banking names may outperform US peers, that won’t be much consolation for investors as most financial sector indexes may be on a downward path.

The KBW bank index has tumbled from its highs seen in early February, but still has a way to go before it reaches the pandemic-nadir in 2020. Traders smell an opening for a big trade and that will fuel more downside. Probably until Yellen blinks.

And if Bill Ackman is right, she will be doing a whole lot of blinking in days if not hours.

Ackman crying in public

While we generally make fun of Ackman's self-serving hot takes on twitter, today he was right when he accused Yellen of effectively restarting the small bank depositor run which according to JPMorgan has already seen $1.1 trillion in assets withdrawn from "vulnerable" banks. This is what Ackman tweeted:

Yesterday, @SecYellen  made reassuring comments that led the market and depositors to believe that all deposits were now implicitly guaranteed. That coupled with a leak suggesting that @USTreasury, @FDICgov and @SecYellen  were looking for a way to guarantee all deposits reassured the banking sector and depositors.

This afternoon, @SecYellen walked back yesterday’s implicit support for small banks and depositors, while making it explicit that systemwide deposit guarantees were not being considered.

We have gone from implicit support for depositors to @SecYellen explicit statement today that no guarantee is being considered with rates now being raised to 5%. 5% is a threshold that makes bank deposits that much less attractive. I would be surprised if deposit outflows don’t accelerate effective immediately.

Ackman concluded by repeating his ask: a comprehensive deposit guarantee on America's $18 trillion in assets...

A temporary systemwide deposit guarantee is needed to stop the bleeding. The longer the uncertainty continues, the more permanent the damage is to the smaller banks, and the more difficult it will be to bring their customers back.

... but as we noted previously pointing out, you know, the math...

... absent bipartisan Congressional intervention - which is very much unlikely until the bank crisis gets much, much worse - this won't happen and instead the Fed will continue putting out bank fire after bank fire - even as it keeps hiking to overcompensate for its "transitory inflation" idiocy from 2021, until the entire system burns down, something which Ackman's follow-up tweet was also right about:

Consider recent events impact on the long-term cost of equity capital for non-systemically important banks where you can wake up one day as a shareholder or bondholder and your investment instantly goes to zero. When combined with the higher cost of debt and deposits due to rising rates, consider what the impact will be on lending rates and our economy.

The longer this banking crisis is allowed to continue, the greater the damage to smaller banks and their ability to access low-cost capital.

Trust and confidence are earned over many years, but can be wiped out in a few days. I fear we are heading for another a train wreck. Hopefully, our regulators will get this right.

Narrator: no, they won't.

Tyler Durden Wed, 03/22/2023 - 21:20

Read More

Continue Reading

Spread & Containment

Leaked Documents Show Amazon Made an Enormous Mistake

And its employees paid the price.



And its employees paid the price.

The last year has seen a large number of job layoffs in the technology sector. Major companies like SalesforceESPN, Microsoft, Google, and Meta Platforms have all announced cuts to staffing -- a move that has been largely attributed to the rapid growth of online tech during the covid-19 lockdown. 

Amazon  (AMZN) - Get Free Report is one of the biggest companies announcing waves of job cuts -- in January, the company let go of more than 2,300 employees in the payments, health care, human resources, robotics, and web services departments. Now, a leaked document published by Insider shows that the company’s hiring process lacked general oversight.

DON'T MISS: The Blunt Layoff Message Amazon CEO Andy Jassy Wrote to Workers


In the case of the web services team, when all was said and done, Amazon had listed approximately three times as many open positions as were approved by the company. The utility computing team, for example, posted 24,988 open positions in 2022, but only 7,798 positions were approved by the company at large.

The document asserts that the company left hiring practices up to individual managers and that the lack of oversight resulted in "a process prone to inconsistency, error, and potential misuse," including "over-hiring," the document said. 

The leak of the document in the midst of record layoffs certainly doesn't look good. The new layoffs will affect Amazon Web Services (AWS), People Experience and Technology Solutions (PXT Solutions), advertising, and the video live-streaming service Twitch. 

Amazon has not replied to TheStreet's inquiry for comment.

Receive full access to real-time market analysis along with stock, commodities, and options trading recommendations. Sign up for Real Money Pro now.

Read More

Continue Reading